What is Management-by-Exception?
Management-by-exception (MBE) is a type of management system that focuses on identifying and dealing with exceptions or deviations in performance. It involves setting performance standards, which are then continually monitored to identify any areas that are not meeting the standard. Once an exception is identified, the manager takes action to correct the situation.
Benefits of Management-by-Exception
Management-by-exception has a number of advantages, including:
- It helps to ensure that performance standards are consistently met.
- It allows managers to intervene quickly when needed, rather than waiting for a problem to become severe.
- It allows managers to focus their time and energy on the areas that require the most attention.
- It encourages employees to focus on meeting performance standards.
Examples of Management-by-Exception
Examples of management-by-exception include:
- Setting a budget for a project and then monitoring the expense level to ensure that the budget is not exceeded.
- Monitoring the performance of a sales team to ensure that they are meeting their targets.
- Monitoring customer satisfaction levels to ensure that they remain high.
- Monitoring the quality of work to ensure it meets the required standards.
Management-by-exception can be used in many different areas of business and can be an effective way of managing performance.
Conclusion
Management-by-exception is a useful tool for managers to ensure that performance standards are consistently met. It allows for quick intervention when needed and encourages employees to focus on meeting performance standards. There are many examples of how MBE can be used in business, and it can be a valuable tool for managers to manage performance.
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